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Ford and Tesla Face Earnings Declines in Q2 2024 Amid Evolving ...
2024-07-26 19:55:08
Automotive
Business

Ford and Tesla Face Earnings Declines in Q2 2024 Amid Evolving EV Market

In Q2, Ford reported a 35% dip in earnings, with a positive revenue trend. The company anticipates significant losses from EVs but projects promising 2024 figures.

Ford's EV and hybrid sales surged, while F-series truck sales slightly dropped. Meanwhile, Tesla saw a 45% profit decrease, struggling with slowing EV sales and rising competition.

Ford's CEO aims to introduce more affordable EVs despite the popularity of larger vehicles. The shift in consumer preference poses challenges for automakers, with Ford investing in gas-oriented models.

Both companies navigate the evolving landscape with cautious optimism amidst pressure from investors and market dynamics.

Related news on that topic:

Ford Faces Profit Decline Amid Quality Issues and EV Challenges

Ford's Q2 profit fell below expectations due to increased warranty expenses, EV unit setbacks, and rising costs, leading to a significant decrease in share value. The company grapples with quality issues, production challenges, and CEO leadership concerns under Jim Farley. Despite plans for smaller EVs, the market shows a preference for larger SUVs and trucks. Automakers, including Ford, struggle with sales slowdowns, high prices, and excess inventory, prompting the need for cost reductions and potential interest rate cuts. While Ford aims to enhance quality and navigate the EV market, shareholders face uncertainty amidst the company's financial fluctuations and stock performance compared to rivals like General Motors.

Tesla Earnings Disappoint as Investor Confidence Wavers

Tesla reported lower-than-expected Q2 earnings, leading to an 8% drop in after-hours trading. CEO Elon Musk's vague outlook on product timelines, including the Robotaxi and Full-Self-Driving features, left investors dismayed. The restructuring charge of $622 million and the lowest gross profit margin in five years further contributed to the disappointment. Tesla has now missed earnings targets for four consecutive quarters, with analysts questioning the company's ambitious vision for the future and its current profitability. However, the resolution of the battle over Musk's pay package and his acknowledgment of the negative impact of former President Trump's stance on electric vehicles provided some relief. Despite Tesla's record revenue and higher-than-expected vehicle deliveries, the company's Q2 net income fell 45% to $1.48 billion due to a 4.8% drop in global EV sales. Musk's delay in unveiling the robotaxi prototype and plans for an affordable vehicle in 2024 added to investor concerns.

Read 4 more recent news on this topic

The press radar on this topic:

Yahoo Finance
25. Juli 2024 um 13:44

Ford Earnings In Q2 Fall 35% As Auto Giant Continues To Expect Major Losses From EVs | Investor's Business Daily

Economy
Finance
Technology
Ford Q2 EPS down 35%, revenue up 6%. Ford expects $10B-$12B 2024 EBIT, $7.5B-$8.5B free cash flow. Ford's EV sales up 61%, hybrid sales up 56% in Q2. F-series truck sales fell 6% in Q2, but less than 10% drop in Q1. Ford hopes new F-150 model will stem sales decline. Ford stock ranks 4th in IBD Auto Manufacturers group. GM reported better-than-expected Q2, increased 2024 outlook. Tesla reported mixed Q2 earnings and revenue. Expectations for Fed rate cut later this year bolstering automakers.
The Street
28. Juli 2024 um 11:47

Ford CEO will sell you a small EV, whether you like it or not TheStreet Daily Newsletter

Economy
Technology
Environment
Ford CEO Farley pushes smaller EVs, citing higher margins on big SUVs/trucks like Explorer and F-150 but battery costs for larger EVs. Ford plans $30,000 EVs, touting EV packaging advantages. But data shows Americans prefer pickups/SUVs; Ford invests $2.3B to expand gas-guzzling Super Duty at Oakville, delaying three-row electric SUV. Farley doubled down on smaller cars during Ford's Q2 2024 earnings call. Ford's EV business lost $1.1B that quarter as it scales production; stock trades on NYSE..
New York Times - Business
26. Juli 2024 um 15:48

45% - The New York Times

Economy
Technology
Finance
Tesla reported 45% profit decline in Q2 2024 as EV sales and production slowed. Battery and credit sales increased, but Tesla lost US market share below 50%. Elon Musk's politics and investor pressure may contribute. Tesla faces growing competition in China, US, and Europe.
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